Facey Commodity close to securing temporary warehouse spaceWednesday, October 20, 2021
BY Durrant Pate
Facey Commodity is close to securing temporary warehouse space to replace the warehouse lost during a fire earlier this month.
Facey, a subsidiary of the Seprod Group, is reportedly now in advanced discussions. While the company has not disclosed the location of the space , it has indicated that a deal could be struck very soon.
In order to quickly replace the goods that were lost, the manufacturing entities of the Seprod Group have increased production with a view to minimise the impact of the lost productive capacity and inventory levels. The company has also implemented a number of strategies to mitigate the effect on product distribution.
To this extent, Facey Commodity's external suppliers have responded to orders brought forward and have commenced delivery. In addition, the process of clearing goods currently on the port has been expedited.
The company has advised that the cause of the fire is being investigated and is still not yet known. Seprod reports that the property and its contents are adequately insured and discussions regarding settlement of insurance claims are underway.
On October 9, there was a fire at one of Facey Commodity's four food distribution facilities at Newport West in Kingston. That following Monday, October 11, the company continued operating by utilising its other distribution facilities. More than one billion dollars' worth of goods were lost when the fire severely damaged the building.
Seprod Group CEO Richard Pandohie had earlier indicated that the group will be ramping up production to prevent any long-term disruption to supplies.
The Jamaica Observer reported last week that the fire was unlikely to have an impact on operations at Seprod. We also reported that the online shop (Seprod Shop) has been closed in the interim due to the fire.
However, the company's insurance payments can offset some of the impact.